On tonight’s Special Report, Charles Krauthammer argued that, having in essence conceded on the tax issue, Republicans should not cave on the issue of entitlement reform. If they do, he says, President Obama will play them for fools. “Now, [the president] says, after Republicans give up their one issue on taxes, ‘I’ll discuss a bargain next year,’” Krauthammer said. “Of course he wants that, because that’ll be at a time when Republicans are defrocked, disrobed, and disarmed, they will have nothing to bargain with…any Republican who buys this is a fool.”

Krauthammer insisted that Republicans have more bargaining power in this process than meets the eye, because President Obama “wants a successful second term” and “if it starts by going over the cliff, it starts with a second recession, two million unemployed, and a wrecked second term.”